What is the significance of the Bubble Act?

Question

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The Bubble Act, which was passed in England in 1720, was meant to do away with unchartered joint-stock companies. These companies were formed during the South Sea Bubble, which was a financial crisis in England caused by speculative investments in the South Sea Company. The Bubble Act required all new joint-stock companies to obtain a royal charter, which was difficult to obtain and gave the government greater control over corporate activity. This act became a model for company and corporation law in Europe and North America.

What Is the Significance of the Bubble Act